Mexican miner Minera Frisco, owned by the world's richest man Carlos Slim, said on Tuesday it was cutting its silver and copper hedges for this year and next, citing a significant decline in metals prices.

Frisco said it was cutting by 16.7 million ounces its positions in silver futures for 2011 and 2012, leaving only collars.

It was also reducing by 35.4 million pounds its copper future positions for this year and 67 percent for 2012, costing close to $37 million.

Frisco posted a $32 million second-quarter loss on higher financial costs of metals hedges, even as sales rose and the company announced in July it would tweak its strategy.